Five money tips to finish 2022 financially strong
Want to celebrate the festive season without blowing the budget?
The Christmas holidays can actually be a time to get a financial head start on next year.
Here are five money tips for the end of 2022.
1. Stick to your budget
The holiday period is a chance for Australian families and friends to come together and celebrate the year. However, the holiday period can also be a stressful one, particularly if you suffer from a seasonal budget blowout.
A 2022 MetLife Australia study found 41% of women and 38% of men said financial concerns were a big driver of poor mental health.
Creating a holiday budget is a great place to start. Make sure you're accounting for gift-giving, food budgets, entertaining and other holiday expenses.
Also make sure you include a little room to accommodate any unexpected costs. Just like Santa, making a list and checking it twice can go a long way to avoiding any Christmas stress.
2. Make sure this Christmas is a safe one
An unexpected drain on finances over the coming months, as well as a safety concern, is the increased likelihood of accidents around the home during the holiday period.
Even putting up the festive lights could see you injured or even unable to work well after the Christmas tree looks a little worse for wear.
According to the AIHW, falls are the largest contributor to hospitalised injuries and are most likely to occur over the summer months. While the average ladder fall results in a hospital stay of 5.3 days, more serious (and costly) injuries can occur.
3. Use the time off to get a better deal on your mortgage
Mortgage financing probably isn't on the top of everyone's Christmas list, however the holiday downtime can be a good chance to look at your biggest asset and how you can save money.
With so many changes to interest rates and pressures on household finance looming in the coming 12 months, it's a good time to check in on our mortgage and shop around for a better deal.
4. 'Summer clean' your superannuation
'Summer cleaning' your superannuation could help you save a lot over the course of a year and one of the best places to start is making sure that you're not 'doubling up' on super.
The Productivity Commission estimates that unintentional accounts cost superannuation members $2.6 billion a year in unnecessary fees and costs. Along with doubling up on fees, having multiple super balances can also lead to what the Productivity Commission calls 'zombie insurance'.
This is cover, such as income protection, that can usually be claimed only through a single policy. So, you could be paying duplicate premiums for policies you can't even claim on. It is also worth checking whether you have any lost or unclaimed super savings.
You can do this through the myGov portal or your fund's service for finding lost super.
5. Remember that good money behaviour isn't just for Christmas
Whilst the holiday period is a great time to tackle many of those financial tasks that you've been putting off all year, it's certainly not the only time you should be thinking about your financial future.
It's worthwhile to create regular reminders throughout the year to check in on your financial situation. This includes speaking with experts, such as your financial adviser. Advisers will help you better understand your current financial situation and plan for a confident future.
Taking these steps will help put you on a path to a relaxing holiday.
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